An IT director is looking to reduce the footprint of their company's server environment. They have decided to move several internally developed software applications to an alternate environment, supported by an external company. They will still maintain the software, operating systems and configurations, but will not manage the physical hardware. Which of the following BEST describes this arrangement?

Answer Description

Infrastructure as a Service (IaaS) is a model where a company outsources the equipment used to support operations to another company. In this case they will be using another company's infrastructure to operate their software applications.

Wikipedia

Software as a service (SaaS; pronounced ) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as "on-demand software", and was formerly referred to as "software plus services" by Microsoft. SaaS is typically accessed by users using a thin client via a web browser. SaaS has become a common delivery model for many business applications, including office software, messaging …